Market Wrap: Nifty Falls Below 25150 and Sensex Drops 297 Points as All Sectors Decline

The Indian stock market experienced a significant downturn on Tuesday, with the Nifty index falling below 25150. Initial optimism was short-lived as selling pressure increased, resulting in a steep decline. The Nifty reached an intraday low of 25060 but managed a modest recovery later, closing at 25145, down 0.32% for the day.
Nifty Performance Analysis
Among the various stocks on the Nifty, Max Healthcare and Tech Mahindra emerged as the top performers. Conversely, Dr. Reddy’s Laboratories and Bharat Electronics Ltd (BEL) were listed among the significant losers. The overall sector performance was negative, notably impacting indices like Nifty PSU Bank, Nifty Consumer Durables, and Nifty Metal, which recorded the largest losses.
Market Breadth and Decline Statistics
The broader market significantly underperformed against the frontline indices. In a concerning trend, the Nifty Midcap 100 index faced a sharp reversal, creating a Bearish Engulfing pattern on the daily chart. This pattern may indicate a potential trend reversal.
- Nifty Midcap 100 noted a decline post-testing upper trendline
- Nifty Smallcap 100 dropped 0.89%, breaking critical moving averages
- Only 110 out of 500 stocks finished in the green
Nifty Outlook
During the latter half of Tuesday’s trading, the Nifty index found support near its 20-day EMA, which temporarily halted the downward trend. Nonetheless, the recovery lacked momentum and overall sentiment remained weak. The daily RSI is currently at 55.08, indicating diminished momentum.
Crucial Support and Resistance Levels
Key support levels for the Nifty are identified between 25040 and 25000. This range aligns with the 20-day EMA and a significant Fibonacci retracement level. A drop below 25000 could lead to further declines towards 24870, which corresponds with another Fibonacci level.
- Immediate resistance identified in the 25270–25300 range
- Sustained movement above this level vital for market recovery
Bank Nifty Performance
In contrast, the Bank Nifty index displayed relative strength compared to the overall market. It managed to create a small-bodied bearish candlestick with a long lower shadow on its daily chart, signaling underlying resilience. The index remains above key moving averages, suggesting that momentum may still be intact.
Key Levels for Bank Nifty
The crucial resistance zone for Bank Nifty is currently between 56800 and 56900. A sustained move above 56900 could trigger a sharp rally towards the 57500 mark. Conversely, support is found between 56300 and 56200, which will be critical for maintaining stability.